The National Union of Mineworkers (NUM) had been appalled that gaming and hotel group, Tsogo Sun, had awarded its top five executives a R200 million ($18.7 million) unsecured loan, suggesting it was unmerited.
Earlier this week, Tsogo Sun’s board of directors recommended that the company’s shareholders vote in favour of a resolution allowing these executives a loan facility of R200 million ($18.7 million) to buy ordinary shares in the company.
The loan was interest-free with no fixed repayment sale. The executives, who included the CEO, Marcel von Aulock, had agreed to acquire ordinary shares belonging to SABMiller, the world’s second biggest brewer.
SABMiller had decided to dispose of its nearly 40 percent shareholding in Tsogo Sun because this was a non-core asset.
“As the NUM, we do not think it was necessary for Tsogo Sun to empower the five rich individuals,” Sapa quoted acting NUM spokesman Livhuwani Mammburu, as having said.
Mammburu raised concerns about the overlooking the majority of workers in the company.
“We believe that Tsogo Sun should have empowered its 9492 employees, each worker would get at least about R10,500 worth of shares. This empowerment of the few individuals is an insult to the ordinary employees of the company,” he told Sapa.
He called on the South African Commercial, Catering and Allied Workers Union (SACCAWU) and the Food and Allied Workers Union (FAWU) to take the fight to Tsogo Sun and make sure that this empowerment of the few rich individuals is put to a sudden halt.